Ukraine Public Sector Energy Efficiency Framework

Location:

Ukraine

Project number:

47699

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Target board date:

13 Dec 2017

Status:

Board Approved

PSD disclosed:

17 Nov 2017

Sub-projects signed under this framework

Translated version of this PSD: Ukrainian

Project Description

Establishing a EUR 100 million Ukraine Public Sector Energy Efficiency Framework providing loans to municipal energy management companies in Ukraine to finance energy saving improvements in public buildings and street lighting infrastructure. Each loan will be guaranteed by the respective municipality.

Project Objectives

For each project under the Framework the proposed investment will enable the municipalities to finance energy efficiency measures in public buildings and street lighting through energy performance contracts (EnPC)implemented by private construction, engineering or energy service companies (ESCOs) selected by competitive tender. The investments are expected to significantly improve energy efficiency in public buildings and thereby lead to energy savings and reduced greenhouse gas emissions as well as improved comfort levels at kindergartens, schools and hospitals included into sub-projects under the framework.

Transition Impact

Good.

Green. All projects under the framework are expected to be qualified as GET investments due to energy savings and reduction of the CO2 emissions. The Framework supports development of Ukraine's ESCO market through EnPC contracts across a number of municipalities in Ukraine which should result in high demonstration effect. Furthermore, under the on-going TC for ESCO market development (supported by SWUK) the Bank will continue to support awareness raising and trainings on the use of the new regulatory framework for contracting ESCOs (established with support from the recently completed Regulatory TC funded by SIDA).

Competitive. Each sub-project under the Framework will enable the involvement of private sector resources to design and implement energy saving projects taking part of the risk or the realised energy savings.

Client Information

Information on each participating company is provided separately for each project.

EBRD Finance Summary

EUR 100,000,000.00

Total Project Cost

EUR 125,000,000.00

Environmental and Social Summary

The Framework is not categorised; however, each sub-project under the Framework will be categorised at CRM stage and will undergo separate Environmental and Social Due Diligence ("ESDD"). The Framework will finance municipal sub-projects that will facilitate critical energy efficiency improvements in public buildings and street lighting infrastructure in several cities across Ukraine, aiming at improving quality of services and efficiency of operations. The sub-projects under the Framework will contribute to improving energy efficiency, reducing energy consumption and GHG emissions.

The ESDD for each project will be carried out as part of the Feasibility Study and will include an assessment of potential Environmental and Social ("E&S") impacts and benefits and an E&S audit of the existing management systems, operations and facilities of each participating Client with specific attention to the maintenance facilities and operations, labour practices, proposed energy efficiency measures (including insulation, upgrade of building service equipment and so forth). Environmental and Social Action Plans and Stakeholder Engagement Plans, including a grievance mechanism, will be developed to structure the projects to meet EBRD PRs. If any of the sub-projects are categorised "A" requiring an ESIA, they will be submitted to Board for approval regardless of size of the loan.

Technical Cooperation

Pre-signing

  • Feasibility study covering technical, environmental and social due diligence of the municipal energy management company and the city. The average cost of an individual assignment is expected to be up to EUR 200,000. The required feasibility studies are covered by a Framework TC programme (the Ukraine Public Sector Energy Efficiency Framework TC) Funding for the Framework is provided by the Government of Sweden (as outlined below).

Post-signing

  • The Ukraine Public Sector Energy Efficiency Framework TC programme for supporting participating cities to prepare and tender EnPCs, develop guidelines and the required ESCO legislation, including market testing. This TC (on-going) aims to support the PIUs established in each City participating in the Framework. The estimated total cost of this TC Framework is EUR 3,500,000. Funding for the first phase of this TC assignment is partly provided by the Government of Sweden (EUR 1.25 million) and partly provided by the EBRD Ukraine Multidonor Account (EUR 0.35 mln). The remaining amount of EUR 1.9 million will be proposed to be financed by an international donor or the EBRD's Shareholder Special Fund ("SSF").
     
  • Regulatory support to assist with the procurement of energy service contracts via the national electronic public procurement (eProcurement) system by piloting an evaluation tool for energy efficiency indicators for public energy efficiency projects (building upon the completed Regulatory Support TC "Energy performance contracting: Creating an enabling legal framework for ESCO projects in Ukraine"). The evaluation tool will be incorporated into the eProcurement system and integrated into electronic public tenders design and evaluation mechanisms, as mandatory measure (according to the national legislation) for selected public tenders conducted electronically on the designated eProcurement platform. The estimated cost of this TC assignment is EUR 15,000, agreed to be financed by the Government of Sweden.

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.